The Richards Bay Industrial Development Zone provides economic opportunities in metals beneficiation, agro-processing, port operations, renewable energy, and ICT. It has an existing land portfolio of 237 hectares and plans to expand into additional zones identified through a 50-year master plan. Recent highlights include signing investment agreements totaling R4.8 billion and creating over 1,700 construction jobs. The zone aims to attract further investments in steel production, oil and gas infrastructure, and shipbuilding through initiatives like Operation Phakisa. It also signed a memorandum of understanding with a technical college to develop workforce skills.

1. Richards Bay Industrial Development Zone
The African Ports and Harbours Show 2015
Tuesday 30 June 2015
Sandton Convention Centre

2. ECONOMIC COMPARATIVE ADVANTAGES
Richards Bay
IDZ
Metals
beneficiation
Aluminium
Titanium
Iron ore
Agro-
processing
Pulp,
Horticulture &
meat production
Port optimization
- Containerization, -
Ship building &
repair
- Oil & Gas
Renewable
energy
- Solar
- Fuel cells
- Biomass
ICT
- Techno-parks -
Innovation Hub
2

3. Existing Land Portfolio
Phase 1A 62Ha
Phase 1F 110Ha
Phase 1D 65Ha
Total 237Ha
3

4. LIFESTYLE QUALITY
4

5. 50-YEAR MASTER PLANNING
Environmental constraints, Irreplaceable agricultural land,
Topography, Built-up areas, Time-Distance to Port

6. 50-YEAR MASTER PLANNING
ASSESSMENT OUTCOME: OPPORTUNITY
ZONE 4: HIGHEST DEVELOPMENT POTENTIAL

7. Macro Site 3 Site 4 Site 5 Site 6 Site 7 Site 9 Site 17 Site 1D Site 1E
Total Impact on GDP (million
R per annum)
13,255 23,546 9,602 8,007 16,054 2,904 2,527 919 82
Direct employment
opportunities (number of
employment opportunities)
19,084 34,033 13,507 11,930 62,676 11,131 10,655 2,044 152
Total employment
opportunities (direct, indirect
and induced); (number of
employment opportunities)
62,544 111,152 45,082 38,549 111,002 19,945 18,520 5,242 455
Impact on low-income
households (million R per
annum)
144 255 104 87 184 33 29 11 1
Impact on total household
income (million R per annum)
6,723 11,936 4,868 4,066 8,561 1,547 1,362 521 42
MACRO-ECONOMIC ASSESSMENT OUTCOME:
OPPORTUNITY ZONE 4

8. IDENTIFIED EXPANSION AREAS

9. 10-YEAR HEADLINE DEVELOPMENT
PROGRAMME
Performance Indicator 2013 -2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
Phase 1A: Completion of Engineering
Infrastructure
Phase 1F: Completion of Engineering Design
and EIA Approvals
Phase 1F: Completion of Engineering
Infrastructure
Phase 2A: Negotiations with land owners on
the sale of land parcels for expansion &
signing of options agreements
Phase 2A: Submission of application for the
subdivision of Agricultural Land(Act 70 of 70)
Phase 2A: Valuation of properties for
expansion
Phase 2A: Undertake specialist studies to
support EIA applications and EIA
Phase 2A: Submission of PDA Applications
for Development Approval
Phase 2A: Land Acquisition
Phase 2A: Bulk Infrastructure: Water,
Electricity, Sewer, Roads, N2 Interchange
Phase 2A: Internal Infrastructure: Water,
Electricity, Sewer, Roads

13. WHY RICHARDS BAY?
Comparative advantages – Appeal, resonance & strengths
Developed Economic
Infrastructure
Strong Geo-economic location
Human capital base
Qualified workforce
Environment and lifestyle
Agricultural & Mineral
endowments
• Aesthetic mixed-use urban infrastructure
• Good standard of living for expatriate personnel
• Pleasing Urban-rural integration
• Balanced sustainable development-mix
• Titanium & Aluminium– beneficiation into
component manufacturing AVIATION
• Forestry – timber & pulp development
• Fresh produce – food processing
• Diverse population offering young and trainable
workforce
• Multi-lingual workforce
• Reputable tertiary institutions
• Diverse & well established heavy industrial base
• Purpose-built industrial infrastructure
• Deep-water port & multimodal capability
• Gas, fibre-optics, electrical & logistics network

14. COMMITTED (SIGNED) INVESTORS
Investor Investment
Value
Number of Jobs Type of Investment Land
Uptake
Nyanza Light Metals R 4,5 billion 300 direct and 800 construction
jobs
Manufacturing of Titanium
dioxide pigment
65 Ha
Oasis Group R 40 million 30 direct jobs and 60 jobs during
construction
Waste oil recycling
1 Ha
Phaka Sangle R 20 million 30 direct jobs and 60 jobs during
construction
Manufacturing of solar
water heaters
1Ha
SPS Manufacturing R 300 million 87 direct jobs and 110
construction jobs
PVC Pipe Manufacturing 3Ha
uMuthi Power R 2 billion 70 direct jobs and 260
construction jobs
Renewable Energy Plant 12Ha
Pro Star Export Paint R16 million 50 direct jobs and 50 construction
jobs
Paint manufacturing 2ha
INVESTMENT VALUE =R6,81B PERMANENT JOBS= 517 CONSTRUCTION JOBS= 1340

15. BOARD APPROVED INVESTORS
(not yet signed)
Investor Investment
Value
Number of Jobs Type of Investment Land
Uptake
Mthonjeni R 105 million 42 direct jobs and 150
construction jobs
Aluminium beneficiation 2Ha
Eagle Pride Power R1,7 billion 500 direct jobs and 150
construction jobs
Energy storage systems 10ha
INVESTMENT VALUE =R1,8 B PERMANENT JOBS= 542 CONSTRUCTION JOBS= 300

16. INVESTOR ATTRACTION
Expected to commence operations in 2015/16
Investor Investment
Value
Number of Jobs Type of Investment Timeframe
SPS Manufacturing R 300 million 87 direct jobs
110 construction jobs
PVC Pipe Manufacturing Construction by
May 2015
Pro Star Export Paint R16 million 50 direct jobs
50 construction jobs
Paint manufacturing Construction by
September 2015
RB Energy Services R20 million 20 direct jobs and 25
construction jobs
Logistics
Construction by
December 2015
Phaka Sangle R 20 million 30 direct jobs
60 construction jobs
Manufacturing of solar water
heaters
Construction by
December 2015
16

17. HIGH IMPACT PROJECTS ON PIPELINE
• RBIDZ in discussion with various parties about installing
>800 MW gas-to-power plants in Richards Bay
• Establishment of Metals Hub at Bayside
• Establishment of at Techno Park RBIDZ site
• RBIDZ in discussion with largest steel manufacturer in China
and ranked 3rd in the world
• Oil and gas pursuits
• Establishment of Agro- processing facility 17

18. 18
DEPARTMENT OF TRADE AND INDUSTRY INCENTIVES
CLUSTER INCENTIVE SCHEME
SEZ SPECIFIC • 15 % Corporate income tax – Income Tax Act
• Building Allowance
• Job Incentive (Applies only to youth outside SEZ)
• VAT Timing benefit in CCA only
• RBIDZ Base Rate R 5,50/m²/month (vacant developed land)
BROADENING
PARTICIPATION
• Black Business Supplier Development
Programme (BBSDP)
• Co-operative Incentive Scheme (CIS)
• Incubator Support Programme (ISP)
COMPETITIVENESS
INVESTMENT
• Sector Specific Assistance Scheme (SSAS)
• Export Marketing & Investment Assistance (EMIA)
• Capital Projects Feasibility Programme (CPFP)
MANUFACTURING
INVESTMENT
• Enterprise Investment Programme (EIP)
• 12i Tax Incentive
• Automotive Incentive Scheme (AIS)
• People-carrier Automotive Investment Scheme (P-AIS)
INFRASTRUCTURE
INVESTMENT
• Critical Infrastructure Programme (CIP)
• IDZs (SEZ)

19. RENEWABLE ENERGY PROJECTS
19
60 MW biomass Plant
Approved by Board
R2 billion project
Project at Feasibility stage
2 Projects Proposed for
gas to power
Potential to produce in
excess of 800 MW
Both projects at
feasibility stages
R20 million
project
Approved by
Board
Expected
construction this
FY
R1.7 billion project
Approved by Board
Project at Feasibility stage

20. KEY MARITIME OPPORTUNITY AREAS
20
• Container handling terminal
• Bayside security of tenure – Metals Hub
• Oil & Gas
• Boat building
• Ship building & repairs yard
• Liquefied Natural Gas terminal & pipeline network
• Gas-to-Power facilities

21. RECENT HIGHLIGHTS
21
• RB Energy Services (Lovemore Bros.) commenced operations in Phase 1A – R 20 million.
• Signed R4.8 billion potential locators to date – includes total investment signed during 2014/15
financial year equating to R 320 million.
• Further projects to the value of ~ R3.5 billion approved by the Board of Directors.
• 66% of the Engineering Infrastructure in Phase 1A completed.
• Created >1700 construction jobs up to 30 March 2015.
• Obtained provincial Cabinet approval for the 50 year Master Plan
• Secured R272 million from the dti via the SEZ Funding Application process.
• Obtained Clean Audit Report.
• Improved to Level 2 BBB-EE Contributor.
• ISO 9001:2008 Accreditation
• Capital Projects spend to date exceeds R250 million

22. PROPOSED MASORINI STEEL AND IRON
PLANT ( PLANT OVERVIEW)
22
• 5 mtpa plant to be implemented in two phases
- Phase 1: 5mtpa
- Phase 2 2mtpa flat products mainly
• Future plans for coke ovens, Cold Roil Coil and galvanizing
• Integrated plant from raw material to distribution
• Importance of controlling entire value chain to keep costs down
• Investment Value – Estimated at USD 5 Billion (R60 billion) for the steel plant excluding
downstream industrial park
• Up to 3000 ha required for the steel plant and industrial park
Permanent jobs on implementation and temporary jobs during construction
Construction (3 yrs) : 10 000
Operations : 4-5 000
Significant job creation potential
======
TOTAL : 15 000

23. PROPOSED MASORINI STEEL AND IRON
PLANT ( KEY PRODUCTS)
23
PHASE 1 - Long Products
Hot Rolled Coil (HRC)
Metallic (Galvanised) Coil
(HOG)
Organically
Coated/Pre
painted ( Coil)
PHASE 2- Flat Products
Rod for wire drawing Structural Sections

24. OPERATION PHAKISA
OIL AND GAS
24

25. OPERATION PHAKISA
MARINE MANUFACTURE AND REPAIR
25
Australian Marine
Complex
• Constructed by State
• Common user facility
• Floating dock
• Deep water port
• 5 wharves
• 40 ha sealed laydown
and construction area
• 27,600 jobs
• Maritime
• Fabrication
• Technology

26. Oil & GAS AND SHIPYARDS
26
Mexico Dubai
DubaiIndonesia

27. OPERATION PHAKISA
MARINE MANUFACTURE AND REPAIR
27
Overview of
Atlântico Sul
Shipyard Brazil
• 162 ha
• 13 ha sheltered area
• 400 x 73 x 12 dry
dock
• 730 m outfitting quay
• 680 m rig building &
repair quay

28. OIL & GAS AND SHIPYARD
BRICS example
Brazil
• 30, 000 jobs over 2 years for 4 new shipyards to
service oil and gas http://riotimesonline.com/brazil-news/rio-business/new-brazilian-shipyards-to-generate-
30000-jobs/
• Building about 370 ships, including 14 oil rigs
and 28 drill ships
• Similar drilling conditions to South Africa
28

29. 29
SIGNING OF M.O.U
Richards Bay IDZ &
Mfolozi Technical Vocational Education Training
Objectives of M.O.U.
• Collaboration in skills
development synergies
• Partnership in Youth training -
technical & trade programmes
- tradesmen and artisans
• Identify & develop skills set
needed by potential locators
• Optimize growth for eligible
candidates for further training
and/or apprenticeship,
incubation & work placement
• Develop curricula for scarce
skills required by industry

30. EMPLOYMENT CREATION
30
17 Permanent Jobs (Feb 2015) 1717 Construction Jobs (Feb 2015)

31. Beneficiation of resources and stimulate economic growth will be the output of the value chain.
Vision
“To be the preferred special economic zone for quality investments whilst delivering value
to our stakeholders.”
Mission
“We utilize the competitive advantage of the Richards Bay area to attract sustainable investments that
stimulate economic growth, job creation, beneficiation of resources and the empowerment of people.”
MISSION & VISION

32. 32
THANK YOU